Question

In process costing, the cost object is the process and in job costing, the cost object is the job. True or False

Curvilinear costs always increase:
A. With decreases in volume.
B. In constant proportion to changes in production levels.
C. When management performs break-even analysis.
D. When volume increases but at a nonconstant rate.
E. On a per unit basis when volume of activity goes down.

Answer 1

• In process costing, the cost object is the process, and in Job Costing, the cost object is the Job.

The given statement is FALSE.

Unit of product produced are always the Cost objects.

• Curvilinear Cost always increase:

Correct Answer ‘D’: When volume increases but at a NON CONSTANT rate.

Curvilinear Cost tends to increase when the volume of production increases. It does not decreases with increased level. However, the increase is NOT AT A CONSTANT RATE.